Mingteng International Corporation Inc. Announces Closing of Initial Public Offering

Rhea-AI Summary

Mingteng International Inc. announced the closing of its initial public offering on the Nasdaq Capital Market under the ticker symbol MTEN. The Company sold 1,050,000 ordinary shares at a price of US$4.00 per share, raising gross proceeds of US$4.2 million. The underwriters have an option to purchase additional shares. The net proceeds will be used for expanding production facilities, purchasing equipment, R&D in mold casting for turbochargers and NEV parts, general working capital, and product expansion.

Positive

• Mingteng International Inc. conducted an initial public offering of 1,050,000 ordinary shares at a public offering price of US$4.00 per share.
• The Company raised aggregate gross proceeds of US$4.2 million from the offering, before deducting underwriting discounts and expenses.
• The net proceeds will be utilized for investing in new production facilities, purchasing high-end production equipment, strengthening R&D capabilities in mold casting for turbochargers and NEV parts, general working capital, and expanding product types.
• Craft Capital Management and R.F. Lafferty & Co., Inc. acted as co-underwriters for the offering.
• The underwriters have a 45-day option to purchase up to an additional 157,500 ordinary shares at the public offering price.
• The registration statement on Form F-1 related to the offering was declared effective by the SEC on March 29, 2024.
• The offering was conducted on a firm commitment basis.
• The company's securities began trading on the Nasdaq Capital Market on April 18, 2024, under the ticker symbol MTEN.

Negative

• None.

Insights

Financial Analyst

Mingteng International's initial public offering appears to be a modest one, with the sale of 1,050,000 shares at $4.00 each, totaling $4.2 million in gross proceeds. While the amount raised may seem limited for an automotive mold developer and supplier, it's important to recognize that the funds are earmarked for vital areas such as increasing production capacity, investing in high-end production equipment and boosting R&D, specifically for turbochargers and NEV parts. The intended use of net proceeds suggests a strategic push into markets that are tied to environmentally friendly technologies, which are increasingly in demand. The firm commitment basis indicates the underwriters' confidence in the offering and the option for underwriters to purchase additional shares could lead to an additional influx of capital. However, the stock's performance and the company's growth trajectory need to be monitored closely to see if the investment in capacity and R&D generates the expected returns.

Market Research Analyst

The automotive industry is witnessing a shift towards new energy vehicles and Mingteng International is positioning itself to capitalize on this trend by focusing R&D on turbochargers and NEV parts. The turbocharger market has been growing due to the need for fuel-efficient engines and the NEV market expansion aligns with global efforts to reduce carbon emissions. As a newly publicly traded entity on the Nasdaq, Mingteng International could attract investors who are interested in environmentally conscious investments, as well as those looking to invest in China's burgeoning automotive parts industry. As with all investments, particularly in industries subject to rapid technological change, investors should be aware of potential risks associated with market competition, regulatory shifts and the execution of the company's growth strategies.

Manufacturing Industry Analyst

The investment in new production facilities and high-end production equipment is a significant move for Mingteng International. Enhanced production capacity and state-of-the-art equipment can lead to improved efficiencies, higher quality products and the ability to meet increased demand, especially in the competitive automotive parts industry. Furthermore, the emphasis on strengthening research and development capabilities indicates that Mingteng is not only aiming to increase quantity but also to innovate, which is essential for staying competitive. For potential investors, it's noteworthy that the company's strategic planning seems to align with broader industry trends, such as the push for innovation in turbochargers and parts for new energy vehicles. How effectively Mingteng can implement these plans and translate them into marketable products that drive revenue will be critical to their success post-IPO.

Wuxi, China, April 22, 2024 (GLOBE NEWSWIRE) -- Mingteng International Corporation Inc. (the “Company” or “Mingteng International”) (Nasdaq: MTEN), an automotive mold developer and supplier in China, today announced the closing of its initial public offering (the “Offering”) of 1,050,000 ordinary shares at a public offering price of US$4.00 per ordinary share. The ordinary shares began trading on the Nasdaq Capital Market on April 18, 2024, under the ticker symbol “MTEN.”

The Company received aggregate gross proceeds of US$4.2 million from the Offering, before deducting underwriting discounts and other related expenses. In addition, the Company granted the underwriters a 45-day option to purchase up to an additional 157,500 ordinary shares at the public offering price, less underwriting discounts.

Net proceeds from the Offering will be used by the Company for investing in new production facilities to improve production capacity and purchase high-end production equipment, strengthening research and development (“R&D”) capabilities in the mold casting field of turbochargers and new energy vehicle (“NEV”) parts, general working capital, and expanding product types.

The Offering was conducted on a firm commitment basis. Craft Capital Management LLC and R.F. Lafferty & Co., Inc. acted as co-underwriters for the Offering (the “Underwriters”). Ortoli Rosenstadt LLP acted as U.S. counsel to the Company, and Sichenzia Ross Ference Carmel LLP acted as U.S. counsel to the Underwriters in connection with the Offering.

A registration statement on Form F-1 relating to the Offering was filed with the U.S. Securities and Exchange Commission (the “SEC”) (File Number: 333-270953), as amended, and was declared effective by the SEC on March 29, 2024. The Offering was made only by means of a prospectus, forming a part of the registration statement. Copies of the final prospectus relating to the Offering may be obtained from Craft Capital Management LLC by email at info@craftcm.com, by standard mail to Craft Capital Management LLC, 377 Oak Street, Lower Concourse, Garden City, NY 11530, or by calling (800) 550-8411; or from R.F. Lafferty & Co., Inc. by email at offerings@rflafferty.com, by standard mail to R.F. Lafferty & Co., Inc., 40 Wall Street, 27th Floor, New York, NY 10005, or by calling (212) 293-9090. In addition, copies of the final prospectus relating to the Offering may be obtained via the SEC's website at www.sec.gov.

This press release does not constitute an offer to sell, or the solicitation of an offer to buy any of the Company's securities, nor shall there be any offer, solicitation or sale of any of the Company's securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction.

About Mingteng International Corporation Inc.

Based in China, Mingteng International Corporation Inc. is an automotive mold developer and supplier that focuses on molds used in auto parts. The Company provides customers with comprehensive and personalized mold services, covering mold design and development, mold production, assembly, testing, repair and after-sales service. With its production plant located in Wuxi, China, the Company aims to build a systematic solution for automobile mold services and create a personalized and integrated “Turnkey Project” for customers. The Company’s main products are casting molds for turbocharger systems, braking systems, steering and differential system, and other automotive system parts. The Company also produces molds for new energy electric vehicle motor drive systems, battery pack systems, and engineering hydraulic components, which are widely used in automobile, construction machinery and other manufacturing industries. For more information, please visit the Company's website: https://ir.wxmtmj.cn/.

Forward-Looking Statements

Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can find many (but not all) of these statements by the use of words such as “approximates,” “believes,” “hopes,” “expects,” “anticipates,” “estimates,” “projects,” “intends,” “plans,” “will,” “would,” “should,” “could,” “may” or other similar expressions. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct. The Company cautions investors that actual results may differ materially from the anticipated results, and encourages investors to read the risk factors contained in the Company’s final prospectus and other reports it files with the SEC before making any investment decisions regarding the Company’s securities. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law.

For investor and media inquiries, please contact:

Mingteng International Corporation Inc.
Investor Relations Department
Email: ir@wxmtmj.cn

Ascent Investor Relations LLC
Tina Xiao
Phone: +1-646-932-7242
Email: investors@ascent-ir.com

FAQ

What is the ticker symbol for Mingteng International Inc. after the initial public offering?

The ticker symbol for Mingteng International Inc. after the initial public offering is MTEN.

How many ordinary shares were sold in the initial public offering by Mingteng International Inc.?

Mingteng International Inc. sold 1,050,000 ordinary shares in the initial public offering.

What was the public offering price per ordinary share in the initial public offering of Mingteng International Inc.?

The public offering price per ordinary share in the initial public offering of Mingteng International Inc. was US$4.00.

What will the net proceeds from the initial public offering be used for by Mingteng International Inc.?

The net proceeds from the initial public offering by Mingteng International Inc. will be used for investing in new production facilities, purchasing high-end production equipment, R&D in mold casting for turbochargers and NEV parts, general working capital, and expanding product types.

Who acted as the co-underwriters for the initial public offering of Mingteng International Inc.?

Craft Capital Management and R.F. Lafferty & Co., Inc. acted as co-underwriters for the initial public offering of Mingteng International Inc.